“Trump has changed it by expressing his dissatisfaction on files such as the automobile and rice”
On the Tokyo Stock Exchange, the Nikkei star index closed with a decline of 1.23%, to 39,986.33 points, and the widen Topix index dropped by 0.73%, to 2,832.07 points.
Investors in Japan remained optimistic on Monday on the conclusion of an agreement to escape the so -called reciprocal customs suspended by Washington until July 9.
But this confidence flicker when Donald Trump threatened on Monday to send to Tokyo a letter to inform him of new customs duties, pointing what he qualified as reluctance of Japan to accept the exports of American rice.
“They refuse our rice, and yet they suffer from a massive shortage of rice (…) In other words, we will simply send a letter to them,” he wrote on his social social platform.
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“Trump has changed the situation by expressing his dissatisfaction on files such as the automobile and rice, reporting a dead end in commercial negotiations with Japan,” said Hideyuki Ishiguro, Analyst of Nomura Asset Management, quoted by Bloomberg.
Particularly dependent on exports, the electronics giant Sony plunged by 2.41%.
After Wall Street, optimism persists in Asia
Conversely, several other Asian places clearly resisted Tuesday, such as Seoul (+0.58%) and Taipei (+1.34%), Sydney ending up in balance.
They remained boosted by the good performance of Wall Street the day before, against the backdrop of renewed optimism for commercial negotiations.
“Even though President Trump threatens certain partners such as Japan, due to sensitive issues such as rice and automobile”, his administration ensures that it intends to “finalize the agreements with (other countries) after the holidays of July 4,” said Michael Wan, Mufg Bank analyst.
Another positive factor that prompted the Seoul Stock Exchange: the hope that commercial law revisions be approved shortly by the South Korean Parliament has soared the titles of the control structures for the country’s large family conglomerates (Chaebols).
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In Taipei, optimism on trade has increased the champion of TSMC fleas (+2.36%).
However, for the global markets, “a major short -term risk is the deadline of July 9” on the activation of expensive American customs duties, tempers Charu Chanana, strategist of the sax broker.
“If optimism remains as to the possibility of achieving in time agreement” with several countries including India, “investors are perfectly aware that delays or breaches of negotiations could revive volatility,” she warns.
“At the same time, investors will be attentive to the details of the commercial framework that Etats United and China claim to have concluded”, because even a partial agreement would relieve supply chains, underlines Charu Chana.
Encouraging Chinese indicator
The Hong Kong Stock Exchange was closed due to a holiday. For their part, the composite index of Shanghai earned 0.39% and that of Shenzhen 0.11% around 06:30 GMT.
The independent Caixin index reported on Tuesday a return of the Chinese manufacturing activity in positive territory in June.
